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Disability Mortgage Insurance

October 20, 1997 Cite this Page: 10 N.C.L.W. 0847


Disability Mortgage Insurance — Insurance Agent, Lender Employee — Plaintiff Told Would Pay Off Entire Debt — But Limited To Two Years — Breach Of Contract — UDAP — $175,000 Settlement

Brief Statement of Claim: The plaintiff alleged that the defendant insurance company’s sales agent, an employee of the lender bank, sold the plaintiff disability mortgage insurance on the representation that it would pay the loan in the event of total, permanent disability. Defendant stopped paying the benefits after 24 months even though the plaintiff was totally, permanently disabled.
The defendant alleged the benefit was limited to 24 continuous months.
The plaintiff filed suit for breach of contract, negligence, negligent misrepresentation and unfair and deceptive trade practices.
Principal Injuries (in order of severity): Approximately $16,000 in accrued benefits and approximately $60,000 in unpaid mortgage; lost wages for emotional distress
Special Damages: n/a
Tried or settled: Settled
County where tried or settled: Wilkes
Case Name and number: Ward v. Union Fidelity Life Insurance Co. et al (96 CvS 2166)
Date Concluded: July 16, 1997
Name of Judge: n/a
Amount: $175,000
Insurance Carrier: Union Fidelity Life Insurance Co. aka The Credit Life Insurance Co.
Expert Witnesses and areas of expertise: n/a
Attorneys for plaintiffs: George Francisco, Mount Airy
Other Useful Info: Numerous other purchasers of the insurance were interviewed, according to the plaintiff’s attorney. No purchaser could recall being told the benefit was limited to 24 months of continuous disability.

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